Phillip's Blog

Q. My wife and I are interested in investing in real estate. What should we know before we jump in and put down our money?

A. Investing in real estate can be a very profitable investment, but there are a few things you should know.

• Financing investment properties may have a higher interest rate than in a home where you reside. You also may be required by the lending institution to have a larger down payment.

• The secret to making money is to buy right. Choose a property that will appreciate over time. You want to buy an “average” home in a very strong neighborhood or area – then improve the property. Be particularly careful about the location of the property, and any future changes to the area.

• If you are handy at making repairs, and available to make them, buying a fix-up property can be profitable. Make sure you choose a neighborhood where the houses are well-maintained at a higher value.

• Lastly, you’ll need to become knowledgeable about landlord tenant legal issues whether you lease the property yourself, or enlist a management company to handle your property.

If you have any questions, or if you are buying or selling real estate and need competent and professional representation, please call us at (615) 371-1544.